Executive Vice President and Chief Financial Officer at Marathon Petroleum
Thanks, Mike. Moving to third-quarter results, Slide 6 provides a summary of our financial results. This morning we reported adjusted earnings per share of $7.81. This quarter's results were adjusted to exclude three items. A $549 million non-cash pre-tax gain related to the contribution of our refining assets to the Martinez Renewable JB, a $509 million non-cash gain related to an MPLX third-party contract reclassification and $28 million LIFO inventory charge. Adjusted EBITDA was $6.8 billion for the quarter and, cash-flow from operations excluding unfavorable working capital changes was just under $4.5 billion. During the quarter we returned $285 million to shareholders through dividend payments and repurchased $3.9 billion of our shares.
Slide 7 shows the reconciliation between net income and adjusted EBITDA as well as the sequential change in adjusted EBITDA from the second-quarter of 2022 to the third-quarter of 2022. Adjusted EBITDA was lower sequentially by approximately $2.3 billion. This decrease was primarily driven by Refining and Marketing as the blended crack spread was down approximately $10 per barrel, reflecting a 25% quarterly decline. The tax-rate for the third-quarter was 22%, resulting in a tax provision of $1.4 billion. The tax-rate is similar to last quarter due to the refining and marketing representing a larger component of [Indecipherable].
Moving to our segment results, Slide 8 provides an overview of our refining and marketing segment. During the quarter, we focused on supplying transportation fuels to meet continued strong market demand. Our refining assets ran at 98% utilization, processing over 2.8 million-barrels of crude per day at our 13 refineries. We saw margins decline sequentially across all three regions. Cash flow [Phonetic] was 97% reflecting a strong results from our commercial team in a volatile global market. Operating expenses were higher in the third-quarter. Energy costs were approximately $0.15 per barrel higher in the third-quarter driven by higher natural gas prices.
Additionally, we recorded a non-recurring multi-year property tax assessment of $0.13 per barrel in the third-quarter which we will continue to pursue recovery. We believe the actions we have taken to bring our structural operating costs down to approximately $5 per barrel are sustainable. The cost increases we have seen year-to-date have almost entirely been driven by higher energy costs.
Turning to Slide 9, which provides an overview of our refining and marketing margin capture this quarter. Market backwardation remained a headwind for the industry but our commercial strategy of selling ahead of product backwardation while keeping inventories optimize supported our ability to meet demand and capture strong prompt margins. And while not as significant as the previous quarter secondary product prices were a headwind as they lagged higher light product prices. Our ability to capture 97% of the market indicator across an incredibly volatile three months was in-part due to our commercial responsive.
Slide 10 shows the change in our midstream EBITDA versus the second quarter of 2022, our midstream segment demonstrated earnings growth with adjusted EBITDA, up approximately 3% sequentially and up 9% Year-over-Year. Overall, we continue to focus on identifying and efficiently executing high-return projects to drive further growth for our midstream business. As Mike mentioned earlier, the growth of MPLX earnings supported its decision to increase its quarterly distribution by 10%, to $77.5 cents per share and MPC expects to receive $2 billion in cash from MPLX, on an annual basis. MPLX remains a source of durable earnings in the MPC portfolio and as MPLX grows its free-cash flow we, believe that will have the capacity to return capital to unit holders.
Slide 11 presents the elements of change in our consolidated cash position for the third-quarter, operating cash-flow excluding changes in working capital was just under $4.5 billion in the quarter. Working capital was $1.9 billion-dollar headwind for the quarter. This quarter we made a payment of $2.3 billion for estimated federal income taxes declining crude prices were also a headwind working capital. Capital expenditures and investments totaled $756 million, this quarter, the increased level of capital spending was related to a ramp-in activity related to the Martinez Renewable facility conversion and the Galveston Bay store project. The STAR project is expected to be completed early 2023.
Other cash-flow benefits of $790 million is primarily driven by the distribution MPC received from the Martinez Renewable JV upon closing on September 21st. At the end-of-the third-quarter, MPC had approximately $11.1 billion in cash and short-term investments.
Moving to Slide 12, we have completed our $15 billion share repurchase commitment utilizing the proceeds from the Speedway divestiture at an average price of $78 ahead of our commitment of no later than the end of 2022. As you will see today in our quarterly financial the 10-Q published, we were able to complete that early in the month of October. We intend to begin repurchase against our $5 billion CAD outstanding authorization in November now that our financials are public.
On slide 13, I'd like to walk you through our financial priorities sustaining capital. We remain steadfast in our commitment to safely operate our assets protect the health and safety of our employees and support the communities in which we operate. We're committed to a secure competitive and growing dividend we believe the quarterly increase to $0.75 per share, we announced today insecure through-cycle, competitive with peers and the broader market and leave the opportunity to potentially grow our dividend in the future. We anticipate this dividend will be supplemented with repurchases and we are committed to executing our capital allocation framework to deliver peer-leading total returns to shareholders. We will evaluate growth opportunities and margin-enhancing projects. Share repurchases will be used to return excess capital to shareholders which we believe are more efficient way to return capital. And, we'll continue to lower our share count. Underpinning these priorities we believe a strong balance sheet is essential to being successful in a competitive commodity business. It's the foundation, allowing us to execute our strategy.
On Slide 14, we highlight the strength of MPC's balance sheet we continue to manage our balance sheet to an investment-grade credit profile. At the end of our third-quarter MPC stand-alone gross debt-to-capital ratio was 21%, which is under our target of 25% to 30% gross debt-to-capital ratio. MPLX has a leverage ratio of 3.5 times debt-to-EBITDA under its target of four times. Both businesses have strong balance sheet with leverage ratios under their respective target.
Turning to guidance on Slide 15, we provide our fourth-quarter outlook. We expect crude throughput volumes of roughly 2.7 million-barrels per day, representing 93% utilization. Utilization is forecast to be lower than third quarter due to planned turnaround activity, having a higher impact on crude units in the fourth quarter. Planned turnaround expense is projected to be approximately $430 million in the fourth quarter with a significant level of activity in the Gulf Coast region. Turnaround activity is reflected in our fourth-quarter throughput guidance.
We are expecting operating cost per barrel in the fourth quarter to be lower projected to be $5.30 per barrel for the quarter. This is primarily driven by expected lower natural gas and energy costs. As a reminder, natural gas has historically represented approximately 15% of operating costs. Our natural gas sensitivity is approximately $330 million of annual EBITDA for every dollar change per MMBTU. This equates to a sensitivity of approximately $0.30 per barrel of cost. Distribution costs are expected to be approximately $1.3 billion for the fourth-quarter. Corporate costs are expected to be $170 million, representing the sustained reductions that we have made in this area.
In closing, we will continue to execute on our three strategic pillars strengthening the competitive performance of our assets fostering a low-cost culture and improving our commercial performance. We are committed to position MPC as a reliable and efficient energy provider with new investments focused on high-return opportunities supporting the company's evolution, which will position [Technical Issues] to lead-in energy diverse future. We will stay steadfast in our plan to position MPC as the refinery investment of choice, driving to deliver superior cash returns regardless of market conditions. And while ensuring we safely operate our assets, protect the health and safety of our employees and support the communities in which we operate. Let me turn the call-back to Kristina.